Torben Klarl
Modelling the folk theorem of spatial economics: a
heterogeneous regional growth model
Abstract:
During the last year, the research field of spatial economic has
rapidly increased. There is consensus thatthe economic performance of a
region depends not only on its own potential, but also on the
development of their neighbouring regions. Knowledge spillovers, which
are non constant over space, should influence the evolution of the
region specific productivity. The so called "folk theorem of spatial
economics" states, that increasing returns to scale are essential for
explaining the uneven economic distribution of specific economic
activity, which implies that knowledge spillover, agglomeration and
distribution of per capita productivity are closely linked. Thus, the
aim of this paper is, to introduce a spatial regional growth model,
which links first time knowledge spillover, agglomeration, distribution
of per capita productivity and the grasp of spillovers. Further, it is
shown in a simulation study, how different regimes of returns to scale
and grasps of knowledge affect agglomeration and distribution of per
capita productivity. One of key findings is, that grasp of knowledge
affects dynamic distribution of per capita productivity. Moreover, the
simulation study particularly finds support for the "folk theorem of
spatial economics".
JEL: R11, R12, F43
Paper:
Paper available as pdf-file.
Beitrag Nr. 305, Volkswirtschaftliche Diskussionsreihe, Institut
für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Torben
Klarl, University of Augsburg, Department of Economics,
D-86135
Augsburg,
Germany, phone +49-821-598-4177, fax +49-821-598-4229,
email: torben.alexander.klarl@wiwi.uni-augsburg.de
v.
K., 04.05.2009